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Delayed Subsidy Examples

Note: These examples assume that the retiree first worked prior to July 1, 2008 and meets all pension eligibility requirements.

Service Credit Impact on Insurance Subsidy Qualification

MIP - 46 with 30

Service purchase before July 1, 2008 Service Purchase on or after July 1, 2008 Earned Service Age at Termination Subsidy Begins Why?
0 years 3 years 27 years 52 Wait 3 years 3 years of service credit were purchased after July 1, 2008
3 years 0 years 27 years 52 Immediately 3 years of service credit were purchased before July 1, 2008
0 years 3 years 27 years 59 Immediately The member meets all eligibility requirements for an early reduced retirement*
0 years 5 years 27 years 52 Wait 3 years 3 years needed to reach the minimum requirements for 30 years and out
0 years 15 years 15 years 46 Wait 9 years Must wait until age 55 when member would be eligible for an early reduced retirement*


*Must meet all eligibility requirements for an early reduced retirement.

Service Credit Impact on Insurance Subsidy Qualification

Basic and MIP Members - Early Reduced

Service purchase before July 1, 2008 Service Purchase on or after July 1, 2008 Earned Service Age at Termination Subsidy Begins Why?
0 years 3 years 15 years 55 Immediately The purchased service was not needed to reach minimum eligibility for early reduced retirement*
0 years 3 years 12 years 55 Wait 3 years 3 years of service were purchased after July 1, 2008
0 years 3 years 12 years 59 Wait 1 year Must wait until age 60
0 years 5 years 12 years 55 Wait 3 years 3 years of service needed to reach the minimum

eligibility for early reduced retirement*

0 years 2 years 13 years 55 Wait 2 years 2 years of service were purchased after July 1, 2008
2 years 0 years 13 years 55 Immediately 2 years of service were purchases before July 1, 2008


*Must meet all eligibility requirements for an early reduced retirement.

Service Credit Impact on Insurance Subsidy Qualification

Basic - 55 with 30

Service purchase before July 1, 2008 Service Purchase on or after July 1, 2008 Earned Service Age at Termination Subsidy Begins Why?
6 years 4 years 20 years 55 Immediately The member meets all eligibility requirements for an early reduced retirement*
3 years 1 year 26 years 55 Immediately The member meets all eligibility requirements for an early reduced retirement*
5 years 5 years 25 years 55 Immediately 5 years of service were purchased before July 1, 2008 giving member 30 years of service
0 years 15 years 15 years 55 Immediately The member meets all eligibility requirements for an early reduced retirement*
0 years 5 years 25 years 52 Wait 5 years 5 years of service were purchased after July 1, 2008

(Member eligible for pension payment at age 55)*


*Must meet all eligibility requirements for an early reduced retirement.



The retirement plan information that appears on this website is intended to summarize basic provisions of Public Act 300 of 1980, as amended.
Current laws, rates, and factors are subject to change. Should there be discrepancies between the information reflected here and the actual law,
the provisions of the law govern.



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